Against All Odds: The Contribution of the Healthcare Sector to Productivity. Evidence from Italy and UK from 2004 to 2011

39 Pages Posted: 12 Dec 2017 Last revised: 13 Dec 2017

See all articles by Vincenzo Atella

Vincenzo Atella

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS); Department of Economics and Finance; University of Rome Tor Vergata - Faculty of Economics

Federico Belotti

University of Rome Tor Vergata - Department of Economics and Finance; University of Rome, Tor Vergata - Centre for Economics and International Studies (CEIS)

Chris Bojke

Tower House

Adriana Castelli

Centre for Health Economics, University of York

Katja Grašič

University of York - Centre for Health Economics

Joanna Kopinska

University of Rome Tor Vergata - Faculty of Economics; University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS)

Andrea Piano Mortari

CEIS Tor Vergata

Andrew Street

London School of Economics & Political Science (LSE) - London School of Economics

Date Written: December 11, 2017

Abstract

We assess the productivity growth of the English and Italian healthcare systems over the period from 2004 to 2011. The English (NHS) and the Italian (SSN) healthcare systems share many similar features, facilitating comparison: basic founding principles, financing, organization, management, and size. We measure productivity growth as the rate of change in outputs over the rate of change in inputs. We find that the overall NHS productivity growth index increased by 10% over the whole period, at an average of 1.39% per year, while SSN productivity increased overall by 5%, at an average of 0.73% per year. Differential growth reflects different policy objectives. In England, the NHS focused on increasing activity, reducing waiting times and improving quality. Italy focused more on cost containment and rationalized provision, in the hope that this would reduce unjustified and inappropriate provision of services.

Keywords: Health system productivity; output growth; input growth

JEL Classification: C43, D24, I11, I18

Suggested Citation

Atella, Vincenzo and Belotti, Federico and Bojke, Chris and Castelli, Adriana and Grašič, Katja and Kopinska, Joanna and Piano Mortari, Andrea and Street, Andrew, Against All Odds: The Contribution of the Healthcare Sector to Productivity. Evidence from Italy and UK from 2004 to 2011 (December 11, 2017). CEIS Working Paper No. 418, Available at SSRN: https://ssrn.com/abstract=3085946 or http://dx.doi.org/10.2139/ssrn.3085946

Vincenzo Atella (Contact Author)

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

Via Columbia, 2
Rome, I-00133
Italy
+39 06 72595648 (Phone)

Department of Economics and Finance ( email )

Via Columbia 2
Roma, 00133
Italy

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
I-00133 Rome, 00133
Italy
+39 06 72595635 (Phone)
+30 06 2020 500 (Fax)

HOME PAGE: http://www.economia.uniroma2.it/sefemeq/professori/atella/

Federico Belotti

University of Rome Tor Vergata - Department of Economics and Finance

Via Columbia 2
Rome, RM 00133
Italy

University of Rome, Tor Vergata - Centre for Economics and International Studies (CEIS) ( email )

Via Columbia, 2
Rome, RM 00133
Italy

Chris Bojke

Tower House ( email )

Suite 8
Fishergate
York, YO10 4UA
United Kingdom
+44 (0)1904 567300 (Phone)

HOME PAGE: http://www.pharmerit.com/home/location.pag.html

Adriana Castelli

Centre for Health Economics, University of York ( email )

York YO10 5DD
United Kingdom
+44 1904 321401 (Phone)

HOME PAGE: http://www.york.ac.uk/che/

Katja Grašič

University of York - Centre for Health Economics ( email )

York YO10 5DD
United Kingdom

Joanna Kopinska

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

Via Columbia, 2
Rome
Italy

Andrea Piano Mortari

CEIS Tor Vergata ( email )

via Columbia, 2
Rome, rome 00133
Italy

HOME PAGE: http://www.ceistorvergata.it/area.asp?a=539&oc=817&d=1128

Andrew Street

London School of Economics & Political Science (LSE) - London School of Economics ( email )

United Kingdom

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